SENATE CORPORATIONS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR
SENATE BILL 411
50th legislature - STATE OF NEW MEXICO - first session, 2011
AN ACT
RELATING TO RESIDENTIAL MORTGAGE LOANS; AMENDING THE MORTGAGE LOAN COMPANY ACT TO REQUIRE THAT LICENSEES MAINTAIN AN OFFICE IN THIS STATE, TO REQUIRE THAT CERTAIN RECORDS BE ACCESSIBLE AT THE OFFICE AND TO REQUIRE THAT QUALIFIED MANAGERS BE RESIDENTS OF THIS STATE; PROVIDING EXEMPTIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 58-21-3 NMSA 1978 (being Laws 1983, Chapter 86, Section 3, as amended) is amended to read:
"58-21-3. LICENSE REQUIRED--QUALIFIED MANAGER.--
A. It is unlawful for any person to transact business in the state of New Mexico, either directly or indirectly, as a mortgage loan company without first filing an application with the director, meeting requirements established by the director and obtaining a license under the Mortgage Loan Company Act.
B. A mortgage loan company shall designate at least one qualified manager who shall:
(1) unless exempted pursuant to Subsection C of Section 58-21-33 NMSA 1978, be a resident of this state;
[(1)] (2) obtain and maintain a mortgage loan originator license and unique identifier number pursuant to the New Mexico Mortgage Loan Originator Licensing Act; and
[(2)] (3) have not less than two years verifiable experience as a principal, partner, officer, director, manager, processor or underwriter of a mortgage loan company or a mortgage loan originator or have equivalent lending experience in a related business during the four years immediately preceding the time of application.
C. A qualified manager shall serve as a qualified manager for only one mortgage loan company."
SECTION 2. Section 58-21-11 NMSA 1978 (being Laws 1983, Chapter 86, Section 11, as amended by Laws 2001, Chapter 251, Section 8 and by Laws 2001, Chapter 264, Section 8) is amended to read:
"58-21-11. KEEPING OF RECORDS.--Every mortgage loan company [and loan broker] shall make and keep those accounts, correspondence, memoranda, papers, books, data and other records as the director by rule prescribes. All records so required shall be preserved for six years. Unless exempt from the requirement to maintain a registered office in New Mexico, the records shall be kept:
A. in the registered New Mexico office of the licensed mortgage loan company; or
B. in a digital format that can be reproduced in the registered New Mexico office of the licensed mortgage loan company."
SECTION 3. A new section of the Mortgage Loan Company Act, Section 58-21-33 NMSA 1978, is enacted to read:
"58-21-33. [NEW MATERIAL] REGISTERED OFFICE REQUIRED--EXEMPTIONS.--
A. Except as provided in Subsection C of this section, a licensed mortgage loan company shall have and continuously maintain in this state a registered office, which may be the same as the licensee's principal office.
B. A licensed mortgage loan company may change the registered office by filing in the office of the director a statement that includes:
(1) the name of the licensed mortgage loan company;
(2) the address of its registered office; and
(3) the address to which the registered office is changed.
C. The requirement of Subsection A of this section and the requirement of Paragraph (1) of Subsection B of Section 58-21-3 NMSA 1978 shall not apply to a licensed mortgage loan company:
(1) whose only business in New Mexico is the refinancing or modifying of mortgage loans held or serviced by that company;
(2) whose only business in New Mexico as a mortgage loan company relates to mortgages on manufactured housing;
(3) whose only business in New Mexico is as a wholesale lender directly or indirectly providing financing for mortgages through another licensed mortgage loan company; or
(4) that is an affiliate of a national bank."
SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is November 1, 2011.
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